Palmer threatens legal action for new bill

Mining magnate Clive Palmer has continued his tirade against the Queensland government, threatening legal action against a bill passed through parliament.

Mr Palmer says the Economic Development Act will drive investment out of the state and increase sovereign risk.

The billionaire, who sensationally resigned from the Liberal National Party last week, says he was prepared to launch a legal challenge in the Supreme Court and High Court to test its validity.

"It means that the Government will have the power to take away State Significance status from projects leaving no right of appeal, making our sovereign risk worse than any country in the world," he said in a statement on Wednesday.